HomeMy WebLinkAboutSOUTHEAST COASTAL REDEVELOPMENT PROJECT AREA - COOPERATION AGREEMENT - 2003-09-02 i��sSs Ede
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Council/Agency Meeting Held:
Deferred/Continued to:
proved ❑ Conditionally Approved ❑ Denied City Clerk's Signature
Council Meeting Date: September 2, 2003 Department ID Number: ED 03-21
o �
CITY OF HUNTINGTON BEACH A
REQUEST FOR COUNCILIREDEVELOPMENT AGENCY AC-ffow,�:z
r-
U1
SUBMITTED TO: HONORABLE MAYORICHAIRMAN AND CITY COUNCIL-D 'n�,r-
b r
MEMBERSIREDEVELOPMENTAGENCY MEMBERS �,, x`
Lo h
SUBMITTED BY: RAY SILVER, City Administrator/Executive Director -r_ �
PREPARED BY: DAVID C. BIGGS, Director of Economic Development/Deputy Executive
Director
CLAY MARTIN, Director of Administrative Servl es
SUBJECT: Approve Cooperation Agreement Regarding Capital Improvements
In The Southeast Coastal Redevelopment Project Area
=tatementof Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: I n o rder t o c ollect p roperty t ax i ncrement g enerated b y t he r ecently
established Southeast Coastal Redevelopment Project Area, the Redevelopment Agency
must have debt on the books at the start of the 2003/04 Fiscal Year. While this new
redevelopment project area will initially operate on a pay-as-you-go basis, the approval of a
Cooperation Agreement between the City and Redevelopment Agency is recommended as
the best vehicle to fund the capital improvements proposed for the area and to create debt.
Funding Source: Property Tax Increment to be received from the Southeast Coastal
Redevelopment Project Area.
Recommended Action: Motion to:
City Council - /
Adopt Council Resolution No.,?oo3-(o9 Approving a Cooperation Agreement with the City of
Huntington Beach Related to Certain Capital Improvement Within or of Benefit to the
Southeast Coastal Redevelopment Project and Making Certain Determinations and Findings.
Redevelopment Agency—
Adopt Agency Resolution No. � Approving a Cooperation Agreement with the
Redevelopment Agency of the City of Huntington Beach Related to Certain Capital
Improvement Within or of Benefit to the Southeast Coastal Redevelopment Project and
Making Certain Determinations and Findings.
REQUEST FOR CONCILlREDEVELOPMENT AG�NCY ACTION
MEETING DATE: September 2, 2003 DEPARTMENT ID NUMBER: ED 03-21
Alternative Action(s): Approve a Cooperation Agreement with modifications as directed by
the Council/Agency Board.
Analysis: In June of 2002, the City Council and Redevelopment Agency adopted the
Redevelopment Plan for the Southeast Coastal Redevelopment Project Area. The
Redevelopment Agency will begin to receive redevelopment property tax increment revenues
starting in FY 2003/04. In order to receive this property tax increment, the Redevelopment
Agency must create debt. In order to create debt, a Cooperative Agreement between the
City and Redevelopment Agency is presented for approval.
While the Southeast Redevelopment Coastal Redevelopment Project Area will operate on a
pay-as-you-go b asis f or a t I east t he first five y ears, i n o rder to c reate d ebt, the proposed
Cooperative Agreement will have the City undertaking the listed capital improvement projects
with a concurrent reimbursement by the Redevelopment Agency. The Cooperative
Agreement includes the entire Conceptual Five-Year Capital Improvement Program for the
Southeast Coastal Redevelopment Project Area totaling $6,775.000. This mechanism
satisfies the requirement to demonstrate sufficient debt to claim tax increment each year.
For each subsequent year, projects would be added or subtracted as necessary to reflect
actual tax increment revenues received and the Cooperative Agreement would include an
additional year to have a full five-year running total going forward.
In addition, there may be other opportunities to create debt, such as an agreement with
Southern California Edison to do under grounding of utilities projects over a multi-year period.
The intent of these mechanisms is to match expenditures to available cash flow on an annual
basis.
Environmental Status: NIA
Attachment(s):
NumberCity Clerk's
Page
1. City Council Resolution. lVb, R60-3- 6F
2. Redevelopment Agency Resolution. /Vej. .341��
(Cooperative Agreement. Leh lnaL Aso%��or�s
Exhibit A - List of Public Improvements
RCA Author: D_ Biggs, ext. 5909
G_1David\RCASISECooperative.doc -2- 8/20/2003 1:47 PM
City Council Resolution
ATTACHMENT # 1
RESOLUTION NO. o2Uo.3_ �8
CITY COUNCIL RESOLUTION APPROVING A COOPERATION AGREEMENT
WITH THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH RELATED TO CERTAIN CAPITAL IMPROVEMENTS WITHIN OR OF
BENEFIT TO THE SOUTHEAST COASTAL REDEVELOPMENT PROJECT AND
MAKING CERTAIN DETERNIINATIONS AND FINDINGS
WHEREAS, the Redevelopment Agency of the City of Huntington Beach ("Agency") is
engaged in activities necessary to execute and implement the redevelopment plan, as amended and
supplemented from time to time,("Redevelopment Plan") for the Southeast Coastal Redevelopment
Project ("Project Area"); and
WHEREAS,pursuant to Section 33445(a)of the California Community Redevelopment Law
(Health& Safety Code Section 33000 et seq.)("CRL"),the Agency may,with the consent of the City
Council("City Council")of the City of Huntington Beach("City"),pay all or part of the value of the
land for and the cost of the installation and construction of any facility, structure, or other
improvements which is publicly owned either within or outside a project area, if the City Council
makes certain determinations; and
WHERE-AS, the City and Agency have negotiated that certain agreement entitled
"Cooperation Agreement between the City of Huntington Beach and the Redevelopment Agency of
the City of Huntington Beach Regarding Certain Capital Improvements within or of benefit to the
Southeast Coastal Redevelopment Project" dated as of the 2nd day of September, 2003
("Agreement"); and
WHEREAS, the Agreement requires the Agency to pay to the City and/or such third parties
as may be directed by the City such amounts as may be requested by the City to pay all or part of the
value of the land for and/or the cost of the installation and construction of any of the public
improvements listed on Exhibit A to the Agreement(collectively,the`Public Improvements");and
WHEREAS, it is in the best interests of the City and for the common benefit of residents,
employees,business tenants and property owners within the Project Area and the City as a whole for
the Public Improvements to be installed and constructed; and
WHEREAS, since there are no other reasonable means available to the City to finance the
Public Improvements, the Agency proposes to pay all or part of the value of the land for and/or the
cost of the installation and construction of the Public Improvements; and
cS 1HMS F Coastal Cap lmprovcrnen&..CIn93445Reso(S-IM3)
Page 1
WHEREAS,the Agency's agreement to pay all or part of the value of the land for and/or the
cost of the installation and construction of the Public Improvements constitutes an indebtedness of
the Agency for the purpose of carrying out the redevelopment for the Project Area; and
WHEREAS,the Public Improvements are of benefit to the Project Area and the immediate
neighborhood in which the Public Improvements are located; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH AS FOLLOWS:
Section 1. The City Council hereby finds and determines that the foregoing recitals are true and
correct.
Section 2. Based on substantial evidence in the record, including, without limitation, all
documents referenced herein,any oral and written staff reports,and any evidence and
testimony received, the City Council hereby finds and determines that:
a. The Public Improvements are of benefit to the Project Area and the immediate
neighborhood in which the Public Improvements are located. This determination is
based, in part,on the fact that the Public improvements are in the best interests of the
City and the health, safety,morals and welfare of its taxpayers,employees, business
tenants, property owners and residents. The Report to Council, including, without
limitation,the Agency's Five Year Implementation Plan for the Project Area,which
was prepared in connection with the adoption of the Redevelopment Plan is hereby
incorporated by reference. An enumerated goal of the Five Year Implementation
Plan is to"[u]ndertake public improvements,in,and of benefit to,the [p]roject[a]rea
" In addition, the "Public Infrastructure and Facility Program" is a specific
program listed in the Five Year Implementation Plan. This program is intended to
assist with construction of public improvements in the Project Area which address
substandard and inadequate infrastructure in the Project Area. Two other goals of the
Redevelopment Plan will also be achieved by the implementation of this program:
first,to permit the Agency to assist with park and trail improvements and,second,to
ensure Project Area revenues are pledged to projects that directly benefit the Project
Area. Pursuant to the Five Year Implementation Plan, this program will address the
following conditions of blight identified in the Project Area: factors hindering viable
use, impaired investments and inadequate public improvements;
cg 1HMS E Coastal Cap Improvcmcnts`Cuy33445Rcso(8-18.03)
Page 2
b. No other reasonable means of financing the Public Improvements are available to the
City. This determination is based, in part, on the fact that the City itself is not in a
position to finance the Public Improvements. The City is having difficulty fully
assuming the costs of anticipated and needed public capital improvements. Without the
assistance of tax increment'funding from the Project Area, capital improvements in
other parts of the City would have to be deferred or eliminated in order to fund the
Public improvements. Given the constraints on financing sources which are under the
direction of the City,all anticipated and needed public capital improvements cannot be
completed using only City funds. It is clear that there must be a combination of tax
increment and non-tax increment funding; and
C. The payment of funds by the Agency for the costs related to the Public Improvements
will assist in the elimination of one or more blighting conditions within the Project
Area and is consistent with the Agency's Five-Year Implementation Plan for the
Project Area. This determination is based, in part, on the information contained in
paragraph a., above.
Section 3. The City Council hereby consents to the payment of funds by the Agency pursuant to
the Agreement. The proposed Agreement is hereby approved in substantially the
form presented at this meeting, with such minor changes as may be approved by the
City Administrator with the approval as to form by the City Attorney. The
obligations of the Agency under the Agreement shall constitute an indebtedness of
the Agency for the purpose of carrying out the Redevelopment Plan for the Project
Area.
Section 4. The Mayor or the City Administrator are each hereby authorized to execute the
Agreement on behalf of the City. A copy of the Agreement when executed by the
City shall be placed on file in the office of the City Clerk.
Section 5. The City Administrator (or the Director of Economic Development) is hereby
authorized,on behalf of the City, to sign all documents necessary and appropriate to
carry out and implement the Agreement, and to administer the City's obligations,
responsibilities and duties to be performed thereunder.
cg.\HB\S E Coastal Cap Improvenwnts Ciry33445Reso(8-18-03)
Page 31
i •
Approved and adopted this 2nd day of September , 2003.
Mayor
ATTEST: APPROVED AS TO FORM:
r
City Clerk 4CAtto eya3
APPROVED AS TO FORM:
See other signature page
Kane, Ballmer& Berkman
Special Counsel for the City
REVIEWED AND APPROV D:
' IW
City Administrator
INITIATED AND APPROVED:
-& al C - /-�f, -
-
Director of Economic Development
cg V(B\S E Coastal Cap improvcmcnis,Ciry33445Reso(8-I8-03)
Page 4
Approved and adopted this day of , 2003.
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
APPR D AS TO FORM:
See full signature page
Kane,Vallmer& Be rla I
Speci Counsel for the i
REVIEWED AND AP VED:
City Administrator
INTT[ATED AND APPROVED:
Director of Economic Development
cg-1HB'S_ECoastal Cap ImprovemenukCity33445Reso(8-18-03)
Page 4
EXHIBIT A
COOPERATIVE AGREEMENT WITH
LIST OF PUBLIC IMPROVEMENTS
[behind this page]
! •
COOPERATION AGREEMENT
BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH REGARDING
CERTAIN CAPITAL IMPROVEMENTS WITHIN OR OF BENEFIT TO
THE SOUTHEAST COASTAL REDEVELOPMENT PROJECT
This COOPERATION AGREEMENT ("Agreement") is dated as of the 2nd day of
September, 2003 by and between the City of Huntington Beach ("City"), and the Redevelopment
Agency of the City of Huntington Beach ("Agency"), and is made with reference to the
following facts:
RECITALS
A. The Agency is engaged in activities necessary to execute and implement the
redevelopment plan, as amended and supplemented from time to time, ("Redevelopment
Plan") for the Southeast Coastal Redevelopment Project("Project Area").
B. In order to assist in the elimination of one or more blighting conditions within the Project
Area and implement the provisions of the Community Redevelopment Law (Health &
Safety Code Section 33000 et seq.), the Agency proposes to make certain payments to the
City and/or third parties pursuant to the terms and conditions of this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the City and the Agency hereby agree as follows:
TERMS
1. Exhibits and Recitals. The "Exhibits" and "Recitals" of this Agreement constitute a
material part of this Agreement and are incorporated by reference as though fully set
forth hereto.
2. Agency- Payments. Upon notice from the City, the Agency agrees to pay to the City
and/or such third parties as directed as may be directed by the City such amounts as may
be requested by the City to pay all or part of the value of the land for and/or the cost of
the installation and construction of any of the public improvements listed on Exhibit A,
c2 MMS E.Coabud Cap[mpro%ements'.Coop Agm[(8.18-03)
Page 1
which exhibit is attached hereto and incorporated herein by reference.
3. Notices. Any notice to be given or other document to be delivered by either party to the
other may be delivered in person or may be deposited in the United States mail, with first
class postage prepaid, and addressed as follows:
City: City of Huntington Beach
2000 Main Street
Huntington Beach, California 92648
Attn: Director of Administrative Services
Agency: Redevelopment Agency of the City of Huntington Beach
2000 Main Street
Huntington Beach, California 92648
Attn: Deputy Executive Director
4. Further Documents. The parties hereto hereby agree to execute such other documents
and to take such other actions as may be reasonably necessary to further the purposes of
this Agreement.
5. Time of the Essence. Time is of the essence in this Agreement.
6. Successors and Assigns. This Agreement is made for the sole benefit and protection of
the parties hereto, and their successors and assigns, and no other person or persons shall
have any right of action or right to rely hereon. This Agreement shall be binding upon
and inure to the benefit of the successors, assignees, personal representatives, heirs and
legatees of all the respective parties hereto.
7. Governing__Law. This Agreement shall be governed by the laws of the State of
California.
8. Invalidity. If any term or provision of this Agreement, the deletion of which would not
adversely affect the receipt of any material benefit by any party hereunder, shall be held
by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this
Agreement shall not be affected thereby and each other term and provision of this
Agreement shall be valid and enforceable to the fullest extent permitted by law. It is the
intention of the parties hereto that in lieu of each clause or provision of this Agreement
that is illegal, invalid or unenforceable, there be added as a part of this Agreement an
enforceable clause or provision as similar in terms to such illegal, invalid or
unenforceable clause or provision as may be possible.
9. Interpretation. No provision in this Agreement is to be interpreted for or against either
cg%HB\S-E-Coastal Cap Improvcmenr_s!Coop Agmt(g-18-03)
Page 2
party because that party or its legal representatives drafted such provision.
14. VoluntM Agreement. The parties hereto further represent and declare that they carefully
read this Agreement and know the contents thereof, and that they sign the same freely
and voluntarily.
11. Amendment. This Agreement may be amended or modified only by a written instrument
executed by the City-and the Agency.
12. Agency Indebtedness. The obligations of the Agency under this Agreement shall
constitute an indebtedness of the Agency for the purpose of carrying out the
redevelopment for the Project Area.
13. Liability and Indemnification. In contemplation of the provisions of California
Government Code Section 895.2 imposing certain tort IiabiIity jointly upon public
entities solely by reason of such entities being parties to an agreement as defined by
Government Code Section 895, the parties hereto, as between themselves, pursuant to the
authorization contained in Government Code Sections 895.4 and 895.6, shall each
assume the full liability imposed upon it, or any of its officers, agents or employees, by
law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this :agreement to the same extent that such liability would be imposed in
the absence of Government Code Section 895.2. To achieve the above-stated purpose,
each party indemnifies, defends and holds harmless the other party for any liability,
losses, cost or expenses that may be incurred by such other party solely by reason of
Government Code Section 895.2.
14. No Third Party Beneficiaries. This Agreement is intended solely for the benefit of the
City and the Agency. Notwithstanding any reference in this Agreement to persons or
entities other than the City and the Agency, there shall be no third party beneficiaries
under this Agreement.
15. Enforced Delay. For purposes of any provision-of this Agreement, no party, nor any
successors or assign of any party, shall be considered in breach of, or default in, its
obligations under this Agreement as a result of the enforced delay in the performance of
such obligations due to causes beyond such party's reasonable control, including, without
limitation, failure of governmental agencies to act or to issue necessary permits or
licenses, acts of God, acts of the public enemy, acts of the State or Federal governments,
acts of any other party (including, but not limited to, delays in performing such other
party's obligations pursuant to this Agreement), fires, floods, epidemics, quarantine
restrictions, strikes, labor disputes, freight embargoes, inability to obtain materials or
supplies or unusually- severe weather or delays of contractors and subcontractors due to
such causes; it being the purpose and intent of this provision that in the event of the
cg-WB�S-E-Coastal Cap Improvemems'Coop Agmt(g-18-03)
Page 3
occurrence of any such enforced delay, the time or times for performance of the
obligations of such party shall be extended for the period of the enforced delay.
CIT OF HUNTINGTON BEACH
Dated: September 2, 2003 &wh"&Z
Name: Connie Boardman
Its: Mayor
Or
REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH
Dated:
Name: Ray Silver
Its: Executive Director
ATTEST: APPROVED AS TO FORM:
fOG�
City/Agency Clerk 4itjyLA:=tom�eylAgency c eral Counsel!03
APPROVED AS TO FORM:
See other signature gag
Special City/Agency Counsel
Kane, Ballmer & Berkman
REVIEWED AND PPROV D: REVIEW D AND AP OV D:
Executive Director ?f�5 City Administrator l
INITIATED AND APPROVED: INITIATED AND APPROVED:
C.
Deputy Executive Director Director of Econom evelopment
cg.1l IBIS E Coastal Cap Improvements:Coop Agmt(8.18.03)
Page 4
0
occurrence of any such enforced delay, the time or times for performance of the
obligations of such party shall be extended for the period of the enforced delay.
CITY OF HUNTINGTON BEACH
Dated:
Name:
Its:
REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH
Dated:
Name:
Its:
ATTEST: APPROVED AS TO FORM:
City/Agency Clerk City Attorney/Agency General Counsel
APP OVED AS FO
Speci ity/Agency, ounsel See full signature page
Kane allmer& an
REVIEWED A PPROVED: REVIEWED AND APPROVED:
Executive Director City Administrator
INITIALED AND APPROVED: INITIALED AND APPROVED:
Deputy Executive Director Director of Economic Development
cgAFiB\S.E.CoastalCap 1mprovemtmslCoop.Agmt(8-18-03)
Page 4
CONCEPTUAL FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP)
Estimated
Order PrioritJ Ref. Title SI niflcance Facto s Amount 2003-2004 2004-2005 2005-2006 2006.2007 2007.2008 5-Year Total
Southeast Coastal Pro ect Area
2a SO-1 Rebuild Newtnd Pump Station 2 ABCD 9,000,000 400,000 700,000 1,200,000 1,200, 3 500 10
2b SD-2 Upsize Storm Drain to Newland Pump Station 2 ABCD 300,000 50 000 250 000 300.000
30 SD-3 U size Storm Drain in Hamilton Avenue 2 ABCD 600,000 30.000 550 580.0
Is SO-4 New Storm Drain in50 Newland Street 2 ABCD 250.000 000 200.0001 250.000
9-1 New Sewer In Edison Avenue 1 ABCD 250,000 000 20%Q00 250,000
W-1 INow Southeast Reservoir 2 AB 114�350,000 funded 0
W-2 New 24'Transmission Main 2 AB 400.000 funded 0
1b ST-1 %den Newland Street 4 BCHI 2 350 000 funded 0
ST-2 Restri22 Hamilton Avenue 8 H 30,000 0
4b IST-3 Rehabilitate Magnolia Street 4 Hl 1 240,000 240.0001 2400001
4a IST-4 New Sidewalk d Pedesinan Lighting at Magnolia Street 3 HI 135 000 135.000 135.0
1c IST-5 Traffic Signal at Newland Street and Hamilton Avenue 5 BH 150,000 funded 0 1--I
M-la Macinaa Marsh Acquisition 13 FGH 1 400 000 funded 0 y
7 O
n]
1d
ro
4c Ln t7l
• 100,000 t.r x
H
C) H
M-6 Open Space Acquisition tank farm 12 H 1 0
H H
Subtotal: 39.425.000 1.035.000 1.250.000 1,240.000 2.000,000 1.200.ODO 6.725.00 ? -3
ro
Greater Southeast Area
SD-1 lRebudd Banning Pump Station 2 ABCD 3,300,000
tC
S-1 1upsize Sewer Main in Hamilton Avenue 1 ABCD 450 000
W-1 I New 24-Water Main 2 ABCD 2 300 000 trj
�3
N
2 .
Magnoliai
M-5 Projects at School Sites 11 H
M•6 Enlarge or Rehabilitate Banning Litgary 1 1 H
M-7 Rehabilitation of F-dison Community Cantor 1 1 H
M-8 Rehabilitation of Maclnolla Fire Station 1 1 H
M-9 Under round Utilities Br+nnln 15 HI
M•10 IUCR Wetlands Acquisition 12 H 655 000 150000
Subtotal: 10,020.00 150,0130 0 0 0 150,000
GRAND TOTAL: 1 185 000 1 50 000 1.240.000 2 000 000 1120090
0 6 875 000
Note: The asterisk in the Pr1or1 Column Indicates that the ro ect was selected for ssible inclusion In the r CIP
De n it Constriction Combo
Note.• (1) To sere the f a ng sowm,see the project nomti►es. 12
Res. No. 2003-68
STATE OF CALIFORNIA
COUNTY OF ORANGE } ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-ofl:<cio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the
2nd day of September 2003 by the following vote:
AYES: Sullivan, Coerper, Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: Green
ABSTAIN: None
City Clerk and ex-offici Clerk of the
City Council of the City of
Huntington Beach, California
Redevelopment Agency Resolution
ATTACHMENT #2
RESOLUTION NO. -3�'57
REDEVELOPMENT AGENCY RESOLUTION APPROVING A
COOPERATION AGREEMENT WITH THE CITY OF HUNTINGTON
BEACH RELATED TO CERTAIN CAPITAL IMPROVEMENTS WITHIN OR
OF BENEFIT TO THE SOUTHEAST COASTAL REDEVELOPMENT PROJECT
AND MAKING CERTAIN DETERMINATIONS AND FINDINGS
WHEREAS, the Redevelopment Agency of the City of Huntington Beach ("Agency") is
engaged in activities necessary to execute and implement the redevelopment plan,as amended and
supplemented from time to time,("Redevelopment Plan") for the Southeast Coastal Redevelopment
Project ("Project Area"); and
WHEREAS,pursuant to Section 33445(a)of the California Community Redevelopment Law
(Health&Safety Code Section 33000 et seq.)("CRL"),the Agency may,with the consent of the City
Council("City Council")of the City of Huntington Beach("City"),pay al I or part of the value of the
land for and the cost of the installation and construction of any facility, structure, or other
improvements which is publicly owned either within or outside a project area, if the City Council
makes certain determinations; and
WHEREAS, the City and Agency have negotiated that certain agreement entitled
"Cooperation Agreement between the City of Huntington Beach and the Redevelopment Agency of
the City of Huntington Beach Regarding Certain Capital Improvements within or of benefit to the
Southeast Coastal Redevelopment Project" dated as of the 2nd day of September, 2003
("Agreement"); and
WHEREAS, the Agreement requires the Agency to pay to the City and/or such third parties
as may be directed by the City such amounts as may be requested by the City to pay all or part of the
value of the land for and/or the cost of the installation and construction of any of the public
improvements listed on Exhibit A to the Agreement(collectively,the"Public Improvements");and
WHEREAS, it is in the best interests of the City and for the common benefit of residents,
employees,business tenants and property owners within the Project Area and the City as a whole for
the Public Improvements to be installed and constructed; and
WHEREAS, since there are no other reasonable means available to the City to finance the
Public Improvements, the Agency proposes to pay all or part of the value of the land for and/or the
cost of the installation and construction of the Public Improvements; and
cg\HB\S E Coastal Cap Impro.ements\Agency33445Reso(8-18-03)
Page I
WHEREAS,the Agency's agreement to pay all or part of the value of the land for and/or the
cost of the installation and construction of the Public Improvements constitutes an indebtedness of
the Agency for the purpose of carrying out the redevelopment for the Project Area; and
WHEREAS,the Public Improvements are of benefit to the Project Area and the immediate
neighborhood in which the Public Improvements are located; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH AS FOLLOWS:
Section 1. The Agency hereby finds and determines that the foregoing recitals are true and
correct.
Section 2. Based on substantial evidence in the record, including, without limitation, all
documents referenced herein,any oral and written staff reports,and any evidence and
testimony received, the Agency hereby finds and determines that:
a. The Public Improvements are of benefit to the Project Area and the
immediate neighborhood in which the Public Improvements are located. This
determination is based, in part, on the fact that the Public Improvements are
in the best interests of the City and the health, safety, morals and welfare of
its taxpayers, employees, business tenants, property owners and residents.
The Report to Council, including,without limitation,the Agency's Five Year
Implementation Plan for the Project Area,which was prepared in connection
with the adoption of the Redevelopment Plan is hereby incorporated by
reference. An enumerated goal of the Five Year Implementation Plan is to
"[u]ndertake public improvements,in,and of benefit to,the[p]roject[alma. .
" In addition, the"Public Infrastructure and Facility Program" is a specific
program listed in the Five Year Implementation Plan. This program is
intended to assist with construction of public improvements in the Project
Area which address substandard and inadequate infrastructure in the Project
Area. Two other goals of the Redevelopment Plan will also be achieved by
the implementation of this program: first,to permit the Agency to assist with
park and tail improvements and,second,to ensure Project Area revenues are
pledged to projects that directly benefit the Project Area. Pursuant to the Five
Year Implementation Plan,this program will address the following conditions
of blight identified in the Project Area: factors hindering viable use,impaired
investments and inadequate public improvements;
cg:'J-MS.E Cmtat Cap ImprovementslAgency33445Reso(8.1"3)
Page 2
b. No other reasonable means of financing the Public Improvements are
available to the City. This determination is based, in part,on the fact that the
City itself is not in a position to finance the Public Improvements. The City is
having difficulty fully assuming the costs of anticipated and needed public
capital improvements. Without the assistance of tax increment funding from
the Project Area,capital improvements in other parts of the City would have to
be deferred or eliminated in order to fund the Public Improvements. Given the
constraints on financing sources which are under the direction of the City, all
anticipated and needed public capital improvements cannot be completed using
only City funds. It is clear that there must be a combination of tax increment
and non-tax increment funding; and
C. The payment of funds by the Agency for the costs related to the Public
Improvements will assist in the elimination of one or more blighting
conditions within the Project Area and is consistent with the Agency's Five-
Year Implementation Plan for the Project Area. This determination is based,
in part, on the information contained in paragraph a., above.
Section 3. The proposed Agreement is hereby approved in substantially the form presented at
this meeting,with such minor changes as may be approved by the Executive Director
of the Agency with the approval as to form by the Agency General Counsel. The
obligations of the Agency under the Agreement shall constitute an indebtedness of
the Agency for the purpose of carrying out the Redevelopment Plan for the Project
Area.
Section 4. The Chairperson of the Agency or the Executive Director of the Agency are each
hereby authorized to execute the Agreement on behalf of the Agency. A copy of the
Agreement when executed by the Agency shall be placed on file in the office of the
Agency Clerk.
Section 5. The Executive Director of the Agency (or the Deputy Executive Director of the
Agency) is hereby authorized, on behalf of the Agency, to sign all documents
necessary and appropriate to cant' out and implement the Agreement, and to
administer the Agency's obligations, responsibilities and duties to be performed
thereunder.
cg-1HB`S-E-Coastal Cap[mproverwnts:Agcncy33445Rcso(8.18-03)
Page 3
Approved and adopted this 2nd day of September , 2003.
Chairperson
ATTEST: APPROVED AS TO FORM:
• ��G��Ir�i�'*i r
Agency Clerk 4g�z�-e�ncyG6eral Coun lD/03
APPROVED AS TO FORM:
See other signature page
Kane, Ballmer& Berkman
Special Counsel for the Agency
REVIEWED AND APPROVED
/ �.
Executive Director
INITIATED AND APPROVED:
?".. C
Deputy Executive Director
cg.\HB\S E.Coasia!Cap Impravcmen6\Agency33445Reso(8-IM3)
Page 4
Approved and adopted this 2nd day of September , 2003.
Chairperson
ATTEST: APPROVED AS TO FORM:
Agency Clerk Agency General Counsel
APP VED AS TOL
See Full signature page
Kan allmer& Ber an
Spec a Counsel for a gency
REVIEWED AND APPROVED:
Executive Director
INITIALED AND APPROVED:
Deputy Executive Director
cg MBS.E_Coasta!Cap ImpmvementslAgency33445Reso(S-I S-03)
Page 4
EXHIBIT A
COOPERATIVE AGREEMENT WITH
LIST OF PUBLIC IMPROVEMENTS
[behind this page]
COOPERATION AGREEMENT
BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH REGARDING
CERTAIN CAPITAL IMPROVEMENTS WITHIN OR OF BENEFIT TO
THE SOUTHEAST COASTAL REDEVELOPMENT PROJECT
This COOPERATION AGREEMENT ("Agreement") is dated as of the 2nd day of
September, 2003 by and between the City of Huntington Beach ("City"), and the Redevelopment
Agency of the City of Huntington Beach ("Agency"), and is made with reference to the
following facts:
RECITALS
A. The Agency is engaged in activities necessary to execute and implement the
redevelopment plan, as amended and supplemented from time to time, ("Redevelopment
Plan") for the Southeast Coastal Redevelopment Project ("Project Area").
B. In order to assist in the elimination of one or more blighting conditions within the Project
Area and implement the provisions of the Community Redevelopment Law (Health &
Safety Code Section 33000 et seq.), the Agency proposes to make certain payments to the
City and/or third parties pursuant to the terms and conditions of this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the City and the Agency hereby agree as follows:
TERMS
I. Exhibits and Recitals. The "Exhibits" and "Recitals" of this Agreement constitute a
material part of this Agreement and are incorporated by reference as though fully set
forth hereto.
2. Agency Payments. Upon notice from the City, the Agency agrees to pay to the City
and/or such third parties as directed as may be directed by the City such amounts as may
be requested by the City to pay all or part of the value of the land for and/or the cost of
the installation and construction of any of the public improvements listed on Exhibit A,
cg U4MS-E Coasral Cap lmprovemcnLsNCoop Agm1(8-IM3)
Page 1
0 •
which exhibit is attached hereto and incorporated herein by reference.
3. Notices. Any notice to be given or other document to be delivered by either party to the
other may be delivered in person or may be deposited in the United States mail, with first
class postage prepaid, and addressed as follows:
City: City of Huntington Beach
2000 Main Street
Huntington Beach, California 92648
Attn: Director of Administrative Services
Agency: Redevelopment Agency of the City of Huntington Beach
2000 Main Street
Huntington Beach, California 92648
Attn: Deputy Executive Director
4. Further Documents. The parties hereto hereby agree to execute such other documents
and to take such other actions as may be reasonably necessary to further the purposes of
this Agreement.
5. Time of the Essence. Time is of the essence in this Agreement.
6. Successors and AssigLis. This Agreement is made.for the sole benefit and protection of
the parties hereto, and their successors and assigns, and no other person or persons shall
have any right of action or right to rely hereon. This Agreement shall be binding upon
and inure to the benefit of the successors, assignees, personal representatives, heirs and
legatees of all the respective parties hereto.
7. Governing Law. This Agreement shall be governed by the laws of the State of
California.
8. Invalidity. If any term or provision of this Agreement, the deletion of which would not
adversely affect the receipt of any material benefit by any party hereunder, shall be held
by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this
Agreement shall not be affected thereby and each other term and provision of this
Agreement shall.be valid and enforceable to the fullest extent permitted by law. It is the
intention of the parties hereto that in lieu of each clause or provision of this Agreement
that is illegal, invalid or unenforceable, there be added as a part of this Agreement an
enforceable clause or provision as similar in terms to such illegal, invalid or
unenforceable clause or provision as may be possible.
9. Interpretation. No provision in this Agreement is to be interpreted for or against either
cg-1HSlS-E.Coasta)Cap Impru1tment51Coop-ALM($-1"3)
Page 2
i •
party because that party or its legal representatives drafted such provision.
10. Voluntary Agreement. The parties hereto further represent and declare that they carefully
read this Agreement and know the contents thereof, and that they sign the same freely
and voluntarily.
11. Amendment. This Agreement may be amended or modified only by a written instrument
executed by the City and the Agency.
12. Agency Indebtedness. The obligations of the Agency under this Agreement shall
constitute an indebtedness of the Agency for the purpose of carrying out the
redevelopment for the Project Area.
1.3. Liability and Indemnification. in contemplation of the provisions of California
Government Code Section 895.2 imposing certain tort liability jointly upon public
entities solely by reason of such entities being parties to an agreement as defined by
Government Code Section 895, the parties hereto, as between themselves, pursuant to the
authorization contained in Government Code Sections 895.4 and 895.6, shall each
assume the full liability imposed upon it, or any of its officers, agents or employees, by
lave for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in
the absence of Government Code Section 895.2. To achieve the above-stated purpose,
each party indemnifies, defends and holds harmless the other part for any liability,
losses, cost or expenses that may be incurred by such other party solely by reason of
Government Code Section 895.2.
14. No Third Party Beneficiaries. This Agreement is intended solely for the benefit of the
City and the Agency. Notwithstanding any reference in this Agreement to persons or
entities other than the City and the Agency, there shall be no third party beneficiaries
under this Agreement.
15. Enforced Delay. For purposes of any provision-of this Agreement, no party, nor any
successors or assign of any party, shall be considered in breach of, or default in, its
obligations under this Agreement as a result of the enforced delay in the performance of
such obligations due to causes beyond such party's reasonable control, including, without
limitation, failure of governmental agencies to act or to issue necessary permits or
licenses, acts of God, acts of the public enemy, acts of the State or Federal governments,
acts of any other party (including, but not limited to, delays in performing such other
parry's obligations pursuant to this Agreement), fires, floods, epidemics, quarantine
restrictions, strikes, labor disputes, freight embargoes, inability to obtain materials or
supplies or unusually severe weather or delays of contractors and subcontractors due to
such causes; it being the purpose and intent of this provision that in the event of the
cg 1HBLS-E.CoasW Cap 1mprovementslCoop.Agmt(8-18-03)
Page 3
occurrence of any such enforced delay, the time or times for performance of the
obligations of such party shall be extended for the period of the enforced delay.
CIT OF HUNTINGTON BEACH
r
Dated: Seytember 2, 2003
Name: Connie Boardman
Its: Mayor
Or
REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH
Dated:
Name: Ray Silver
Its: Executive Director
ATTEST: APPROVED AS TO FORM:
City/Agency Clerk ity Atto ey/Agency eral Counsel"G 03
APPROVED AS TO FORM:
See other signature pane
Special City/Agency Counsel
Kane, Ballmer & Berkman
REVIEWED AND PPROV D: REVIEWD AND AP O D:
Executive Director ?R5 City Administrator t
INITIATED AND APPROVED: INITIATED AND APPROVED.
Deputy Executive Director Director of Econo r evelopment
cg-Vi&S_E.Coastal Cap Improvements'•Coop Agmt(8-I8-03)
Page 4
occurrence of any such enforced delay, the time or times for performance of the
obligations of such party shall be extended for the period of the enforced delay.
CITY OF HUNTINGTON BEACH
Dated:
Name:
Its:
REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH
Dated:
Name:
Its:
ATTEST: APPROVED AS TO FORM:
City/Agency Clerk City Attomey/Agency General Counsel
APP OVED AS FO
Speci ity/Agency ounsei See full signature page
Kane allmer& an
REVIEWED A PROVED: REVIEWED AND APPROVED:
Executive Director City Administrator
INITIALED AND APPROVED: INITIALED AND APPROVED:
Deputy Executive Director Director of Economic Development
cg-NkM\S-E-Coastal Cap ImprovcmentsToop Agm[(S•19.03)
Page 4
CONCEPTUAL FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP)
Estimated
Order Priori Ref. Title SI nificance Factorial Amount 2003.2004 2004-2005 2005.2006 2006.2007 2007.200E 5-Year Totat
Southeast Coastal Pro ect Area
2a SD-1 Rebuild Newland Puring Station 2 ABCD 9,000.0 400,000 - :700,000 ,•.1 000 • 1 200 3500,00
2b SD-2 U size Storm Drain to Newland Pump Station 2 ABCD 300,000 50.000 250 0D0 300,000
3a SD-3 U size Storm Drain in Hamilton Avenue 2 ABCD 600,000, 30 000 50 580,000
1 s SO-4 New Storm Drain in Newland Street 2 ABCD 250.000 50 000 - 200,060 1 250.000
S•1 New Sewer in Edison Avenue 1 ABCD 250 000 50,000 200,000 250.000
WO New Southeast Reservoir 2 AB 14350,000 funded 0
W2 New 24•Transmission Main 2 AB 400,000 funded 0
1b IST-1 Widen Newland Street 4 BCHI 2 350 000 funded 0
ST-2 Resiro Hamilton Avenue 8 H 30 000 0
4b IST-3 Rehabilitate Ma Adis Street 4 HI 240 ODO 1 240,000 240 G00
4a IST-4 New Sidewalk 8 Pedestnan Lighting at Ma noka Street 3 HI 135 000 135 000 135 000
1 c ST-5 Traffic Signal at Newland Street and Hamilton Avenuo 5 BH 150 ODO funded 0 r
H
M•1a nolia Marsh Acquisition 13 FGH 1,400,000 funded 0 Cn •
�-3
. I 7 0
100000
I +,
'C3
DOO
4c C
d 7 lT]
r x
r-+ x
nICU
H
M-6 10pen Space Ac ui ition tank farm 12 H 0
H H
Subtotal. 39,425.000 1.035.1300 1.250,004 1.240,000 2.000.000 1.200.000 6.725.000 3 3
Greater Southeast Ana >
Rebuild Banning Pump Station 2 ABCD 3,300,000 C
S•1 U iza Sewer Main in HamllLon Avenue 1 ABCD 45000
W-1 New 4-Water M Ln 2 ABCD 2,300,000
Cr]
Z
t y
2
M-5 P is at School Sites 11 H
M-6 lEnlarae or Rehabilitate Banning Library_ 11 H
M•7 lRehatiddalion of Edison Community Center 1 1 H
M-8 lRehabifilation of Magnolia Fire Station 1 1 H
M-9 Underground Utilities BanN 15 F0
' M-10 UCR Welland&Acquisition 12 H 655,000 150 000
Subtotal: 10.8213,000 150 000 0 0 0 150 000
GRAND TOTAL: 1,185.0N 1 50j.000.1240 000 2 000 fJQO 1 2000 6.875.00
Note: The asterisk In the Pdorft Column Mdloataa I the ProlsO was selected for ggosible Inclusion In the 1=CIP
k..1A zu�01 Des ion Constnrriion I it72M Combo
Note.- (1) To see the funding soww,sere the project namfives. 112
w •
Res. No. 345
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, Clerk of the Redevelopment
Agency of the City of Huntington Beach, California, DO HEREBY
CERTIFY that the foregoing resolution was duly adopted by the
Redevelopment Agency of the City of Huntington Beach at a regular
meeting of said Redevelopment Agency held on the 2nd day of
September 2003 and that it was so adopted by the following vote:
AYES: Sullivan, Coerper, Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: Green
ABSTAIN: None
Cleric of the Redevelopment A ency
of the City of Huntington Beach, CA
RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Approve Cooperation Agreement Regarding Capital
Improvements in the Southeast Coastal Redevelopment
Project
COUNCIL MEETING DATE: September 2, 2003
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (wlexhibits & legislative draft if applicable) Attached
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attome Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attome Not Applicable
Certificates of Insurance (Approved by the City Attomey) Not Applicable
Financial Impact Statement (Unbud et, over $5,000) Not Applicable
Bonds If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Find in s/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
(BelowOnly)
RCA Author: D_ Biggs, ext_ 5909
REQUEST FOR LATE SUBMITTAL
{To accompany RCA's submitted after Deadline
FFDepartment: Economic Subject Cooperative Agreement
meat
Council Meeting Date: 9/2103 Date of This Request: 8120/03
REASON (Why is this RCA being submitted late?):Si natures were needed from City
Attorney
EXPLANATION (Why is this RCA necessary to this a enda? :A reement must be approved_
Prior to September 30"', 2003, this agenda allows for one continuation if the Council
Has questions or wants modifications.
CONSEQUENCES How shall delay of this RCA adversely impact the Ci ? :If this
Is not approved b 9130103 the Redevelo ment' cy will not be able to collect
More than $1.5 million in property tax increment nex Y.
Signature: A 0 enied
C - 6221
Departm&6t Head R Silver
CityA ministrator
DocumenU 07114194